Which of the Following Transactions Would Increase One Asset, Decrease

question 102

Multiple Choice

Which of the following transactions would increase one asset, decrease another asset, and increase a liability?

• A)purchasing supplies and equipment on account
• B)paying liabilities incurred last period
• C)owner investment of cash and equipment into the business
• D)purchasing land with a cash down payment and a note payable

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Definitions:

Need for Cognition

A psychological trait reflecting the extent to which individuals engage in and enjoy activities that require thinking and mental effort.

Intellectual Challenges

Tasks or problems that require significant mental effort or creativity to solve, often contributing to cognitive development or understanding.

Reflectiveness

The capacity to examine and analyze one's own thoughts, feelings, and actions critically and thoughtfully.

Field Dependence

a cognitive style characterized by a reliance on external frames of reference and the tendency to perceive and interpret information in terms of the total field.